Keith Gill, aka Roaring Kitty, aka DeepF***ingValue, is back the headlines. But a passing comment he made years ago appears to have signaled today’s developments. On December 20, 2020, under a post in which Gill revealed his $3.4 million position in GameStop (GME), a Reddit user asked him, “Seriously, what is your exit strategy here?” » Gill’s response was simple but enigmatic: “What is an exit?” strategy?”
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This comment seemed like a witty or dismissive response at the time, but in hindsight it definitely took on new meaning. Gill’s lack of concern about an exit strategy shows his strong belief in GameStop’s potential and his commitment to holding on to his stock for the long term, regardless of what the market does.
If last week taught us anything, it’s that he stayed true to that mindset. After a long period away from the spotlight, he re-emerged and revealed significant assets in GameStop. On June 2, 2024, Gill posted a snapshot of his portfolio on Reddit’s r/superstonk forum. The snapshot showed:
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5 million GameStop shares
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120,000 $20 GameStop call options (expiring June 21)
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$29.2 million in cash
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$210 million total
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Unsurprisingly, this huge revelation sparked renewed interest and speculation about Gill’s investment strategies, from amateur traders to financial analysts. His portfolio clearly shows that he is more invested in GameStop than ever, which aligns with his previous comment on the exit strategy.
The next day, he posted another screenshot of his GME holdings on the r/Superstonk subreddit, revealing his net worth of $289 million.
However, the most interesting part of all this is that if Gill exercises his 120,000 call options, he will acquire an additional 12 million shares, bringing a total to 17 million shares. According to CNBC, depending on the stock price, this stake could be worth between $476 million (at $28 per share) and $1.1 billion (at $64.83 per share).
Any problems ahead?
However, it’s not all plain sailing for Gill. The Massachusetts Secretary of State’s office is currently investigate its business practices. Short seller Andrew Left also raised doubts about “Roaring Kitty’s” actions, suggesting someone else might be operating behind the scenes. Additionally, Left recently began shorting GME again, three years after losing big while shorting the stock.
Adding to Gill’s concerns, Morgan Stanley is reportedly plans to ban him from the E*Trade platform for alleged stock manipulation.
In response, prominent investor Ross Gerber warned Gill against his short term position in GameStop Corp. “Kitty better be careful exposing such a short-term position with so many enemies. Where would he get all the money…he has to sell the…
